Simba corporation manufactures.

Use the following to answer questions 18 and 19: Simba Corporation manufactures three products. In the past, Simba has been using a traditional costing system in which manufacturing overhead was applied using a predetermined overhead rate of 150% of direct labor cost. Sensing the traditional costing system was distorting product costs; Simba is considering a switch to an activity-based costing system. Under activity-based costing, manufacturing overhead costs will be assigned to products using three activity cost pools. Information on these cost pools for next year is as follows: Estimated Overhead Cost $150,000 $180,000 $480,000 Activity Cost Pool Machine Setups Expected Activity 400 Setups Quality Control 1,500 Inspections 30,000 Machine hours Production Information on a per unit basis for the three products produced by Simba follows: Model #36 Model #58 odel #19 $400 $810 $540 $600 $310 $220 Direct material cost .. Number of setups Number of inspections... 10